Red Cat (NASDAQ:RCAT) Sees Unusually-High Trading Volume – Still a Buy?

Red Cat Holdings, Inc. (NASDAQ:RCAT) saw an uptick in trading volume on Monday . 3,750,850 shares were traded during mid-day trading, an increase of 66% from the previous session’s volume of 2,260,316 shares.The stock last traded at $12.08 and had previously closed at $12.26.

Red Cat Stock Performance

The firm’s fifty day simple moving average is $6.79 and its 200 day simple moving average is $3.90. The firm has a market cap of $1.07 billion, a P/E ratio of -29.15 and a beta of 1.33.

Red Cat (NASDAQ:RCAT) last announced its earnings results on Monday, December 16th. The company reported ($0.18) EPS for the quarter, missing analysts’ consensus estimates of $0.09 by ($0.27). Red Cat had a negative return on equity of 66.19% and a negative net margin of 162.50%. During the same quarter in the prior year, the company earned ($0.11) earnings per share. On average, equities research analysts predict that Red Cat Holdings, Inc. will post -0.39 earnings per share for the current year.

Insider Buying and Selling at Red Cat

In other news, insider George Michael Matus sold 112,686 shares of the stock in a transaction dated Wednesday, December 18th. The shares were sold at an average price of $9.20, for a total transaction of $1,036,711.20. Following the sale, the insider now owns 973,103 shares of the company’s stock, valued at approximately $8,952,547.60. This represents a 10.38 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Nicholas Reyland Liuzza, Jr. sold 328,928 shares of the business’s stock in a transaction that occurred on Wednesday, December 18th. The stock was sold at an average price of $8.29, for a total transaction of $2,726,813.12. Following the transaction, the director now owns 681,072 shares of the company’s stock, valued at $5,646,086.88. This trade represents a 32.57 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,915,441 shares of company stock valued at $20,886,151. 21.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of RCAT. Sanctuary Advisors LLC purchased a new stake in shares of Red Cat in the 3rd quarter worth about $25,000. Sheets Smith Wealth Management purchased a new position in Red Cat in the 3rd quarter valued at about $51,000. United Capital Management of KS Inc. purchased a new stake in shares of Red Cat during the third quarter worth about $108,000. XTX Topco Ltd lifted its stake in shares of Red Cat by 390.9% during the second quarter. XTX Topco Ltd now owns 58,895 shares of the company’s stock valued at $68,000 after buying an additional 46,897 shares during the period. Finally, Pekin Hardy Strauss Inc. acquired a new stake in shares of Red Cat during the third quarter worth $138,000. 37.97% of the stock is currently owned by institutional investors and hedge funds.

Red Cat Company Profile

Red Cat Holdings, Inc engages in the provision of various products, services, and solutions to the drone industry. The company operates through two segments: Enterprise and Consumer. It built infrastructure to manages drone fleets and fly, and provide services remotely, navigate confined industrial interior spaces and dangerous military environment.